The discount broker said 76,000 new DIY investors had become customers of its "fund supermarket" – an online shop for investments – over the past year, taking total customer numbers over the 500,000 mark. This helped the firm record a pre-tax profit increase of 28pc to £195.2m

The group said customers invested £5.1bn over the year, a rise of 59pc compared with last year, while clients' total assets jumped by 38pc to £36.4bn. The strong results enabled the firm to raise its full-year dividend by 31pc to 29.59p per share.

Hargreaves said it had been able to attract a wave of new customers because the vast majority of high street banks had quit the financial advice market. It added that falling financial adviser numbers had helped the firm attract new business.

Hargreaves’ profits have exploded in recent years, resulting in the firm taking just four years to enter the FTSE 100 from first listing on the main market.

The group is poised to unveil a new pricing structure in the coming months, due to regulatory changes, but its chief executive, Ian Gorham, promised that customers would still receive funds at a lower price than its competitors.

“During the year we consolidated our position as a leading FTSE 100 company. Our financial success has been built on continuing to deliver exceptional service, information and value,” said Mr Gorham. “As some banks and financial advisers withdraw from the market we are presented with the opportunity to fill that gap profitably with our low-cost, efficient and trusted services.

“As a profitable company with no debt we present the financial strength to give investors comfort. This also enables us to reinvest in our business and respond to competitor activity.”